San Mateo is suing a company for not replacing defective equipment it supplied for wastewater treatment plant improvements and its unwillingness to comply with warranty obligations, according to a complaint filed in Superior Court Monday.
The complaint also alleges the company also purposely concealed from the city problems with work it performed.
The city is going after a subcontractor, Parkson Corporation, for issues with its equipment failing including defective welding, providing an insufficient motor, alignment errors and other differences between approved shop drawings and specifications and the equipment supplied by the company, according to the complaint.
Parkson contracted with Pacific Mechanical Corporation to supply equipment to the project, including an inclined conveyor, including auger (shaft and spiral flights) and bearing assemblies, to transport sludge from the centrifuges to the truck loading hopper, according to the complaint.
The original PMC contract with the city, signed in early 2005, was $25.6 million if it completed the work within two years. The work was not completed on time, however, and PMC eventually paid the city back $537,500 to settle disputes related to the project.
Parkson was paid more than $960,000 by PMC for its work on the Anaerobic Digester and Dewatering Facility Improvements Project but filed a stop notice in late 2009 contending the work it provided for the project was about $1.1 million, according to the complaint.
In December 2009, city officials sat down with officials from PMC and Parkson to negotiate a solution to the issues with the Parkson equipment.
At that meeting, “Parkson stated it was unwilling to comply further with its warranty obligations or further correct or replace the defective equipment it supplied,” according to the complaint.
The city is seeking “costs to repair and/or replace the defective Parkson equipment on the project, cost to complete Parkson’s work on the project, liquidated damages and other damages caused by Parkson’s defective work and delays, and other losses, expenses and liabilities in a sum that is presently unknown, but within the jurisdiction of the Superior Court.
The complaint alleges Parkson was “concealing the true underlying conditions resulting in damage to the inclined conveyor and related components so as to make plaintiff’s discovery of the true underlying condition more difficult and time consuming.”
Parkson is a Florida-based company that is owned by Axel Johnson, Inc. out of New York.